Only $730B? Why stop there? As long as we're making stuff up, let's go big. What about $10T?
OpenAI raises $110B on $730B pre-money valuation
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Re: OpenAI raises $110B on $730B pre-money valuation
#82HN told me OpenAI was on the verge of collapse.
If nobody invested in OpenAI how long could they keep the lights on? They're not profitable yet, and a lot of the wealth that Sam Altman seems to be making revolves around strange circular deals. By comparison, Anthropic is projected to break even in 2028. Google's Gemini is already profitable.
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Re: OpenAI raises $110B on $730B pre-money valuation
#83> The Information had previously reported that $35 billion of Amazon’s investment could be contingent on the company either achieving AGI or making its IPO by the end of the year. OpenAI’s announcement confirms the funding split, but says only that the additional $35 billion will arrive “in the coming months when certain conditions are met.” Incredible.
I'd love to know how they define AGI.
Altman Gets Investment?
Re: OpenAI raises $110B on $730B pre-money valuation
#84Only $730B? Why stop there? As long as we're making stuff up, let's go big. What about $10T?
Rookie numbers, I say $100T. Go big or go home.
Re: OpenAI raises $110B on $730B pre-money valuation
#85> The Information had previously reported that $35 billion of Amazon’s investment could be contingent on the company either achieving AGI or making its IPO by the end of the year. OpenAI’s announcement confirms the funding split, but says only that the additional $35 billion will arrive “in the coming months when certain conditions are met.” Incredible.
I'm curious how they define AGI technically. Seems like you would want that to be a tight definition.
It just needs to be anything that will force OpenAI to IPO.
Re: OpenAI raises $110B on $730B pre-money valuation
#86> The Information had previously reported that $35 billion of Amazon’s investment could be contingent on the company either achieving AGI or making its IPO by the end of the year. OpenAI’s announcement confirms the funding split, but says only that the additional $35 billion will arrive “in the coming months when certain conditions are met.” Incredible.
I'd love to know how they define AGI.
They've previously defined AGI as an AI that can directly create $100B in economic value.
Re: OpenAI raises $110B on $730B pre-money valuation
#87Nvidia will get all that money back via GPU purchases, Amazon via cloud rental and SoftBank is being typical SoftBank - a rich but not particularly bright kid in a class :) .
"I give you $30 billion if you use it to buy $30 billion of stuff from me" doesn't sound like a very good investment. Is Nvidia expecting more back than it puts in? Enough more to make the deal profitable? Or is it just to keep Nvidia from crashing?
Well, I won't pretend I know the answer :) . But I assume that a) they are partially betting on making a normal return on investment (i.e. OAI not crashing), b) they profit from running a huge expense/revenue cycle (a company making say a million of profit and having a billion revenue is favored better than the same but with only ten million revenue), and c) even if all goes wrong, it is still better to get back most of the investment even if not everything and zero profit, compared to a possibility of just losing it all like SoftBank or other investors.
Re: OpenAI raises $110B on $730B pre-money valuation
#88Without circular investments and valuations what would Open AI be worth? 100B? 300B? Entirely on revenue alone it seems like 20B. Current valuation appears to be two orders of magnitude off.
>Without circular investments and valuations what would Open AI be worth? 100B? 300B? Entirely on revenue alone it seems like 20B. Current valuation appears to be two orders of magnitude off.
They just passed $20B in revenue, you can't really expect a company with this much hype and traction to have a 1x multiple.. that's not to say a 35x multiple makes sense either.
Re: OpenAI raises $110B on $730B pre-money valuation
#89$110B at $840B post-money valuation for OpenAI vs
$30B at $380B post-money for Anthropic announced two weeks ago
This does not increase my confidence in OpenAI's future